Despite inflation remaining at decades-high levels, the travel industry has continued to see strong demand.
Travel spending was roughly at 2019 levels in July, which marked the fourth consecutive month that spending was at or above 2019 levels, according to the US Travel Association.
Investors have several options for gaining exposure to the growing travel industry in an ETF wrapper. Two popular options are ALPS Global Travel Beneficiaries ETF (JRNY) AND Defiance Hotel Airline and Cruise ETF (CRUZ).
JRNY is the more diversified of the two offerings and carries an expense ratio of 65 basis points, slightly higher than the category average of 62 basis points. According to VettaFi, the fund has raised $12 million in assets under management since its inception in September 2021.
Comprised of 80 stocks, JRNY’s top holdings currently include Airbnb Inc ( ABNB ), LBMH Moet Hennessy Louis Vuitton SE ( MC ), American Express Company ( AXP ), L’Oreal SA ( OR ), and Booking Holdings Inc. (BKNG) since September 18.
The CRUZ is the cheapest option in the segment, maintaining an expense ratio of 45 basis points. Established in June 2021, CRUZ has $38 million in assets under management.
Comprised of 57 stocks, CRUZ’s top holdings include Marriott International Inc. (MAR), Hilton Worldwide (HLT), Delta Air Lines Inc. ( DAL ), Carnival Corporation ( CCL ) and Southwest Airlines Co . (LUV) since September 18.
Consumer demand for leisure continues, making now a potentially good time to upgrade portfolios with higher exposure to travel and leisure.
For more news, information and strategy, visit ETF Building Blocks Channel.
vettafi.com is owned by VettaFi, which also owns the index provider for JRNY. VettaFi is not a sponsor of JRNY, but the VettaFi affiliate receives an index licensing fee from the ETF sponsor.
Leave a Reply